Suppose I received 500000 rupees of mutual fund
unit from any third person which is not my family and relatives. That person is non blood relatively.
Then Who will pay tax on that mutual fund,sender Or Receiver
Hi.
So please explain the taxation on below mentioned scenario for the Gifter and the Giftee:
I have 3 lakhs worth of shares as of today which were bought at 1.5 lakhs, 13 months before. So net long term gains for me is 1.5 lakhs.
Now, if I transfer those shares to anyone but family, I would have to pay LTCG, as this would be considered as a Sale. But I don’t have any other income for the year, so my gains are not taxed as it falls under the LTCG limit and also under the Basic Exemption limit of 4 lakhs. So, the Gifter doesn’t pay any tax.
But lets say I do gift those to a third party (not a relative).
If the Giftee also has no other income, does he have to pay any tax on such a gift as he is falling under the basic exemption limit of 4 lakhs?
Cheers!!
Upon transferring shares to a non-relative, the value of the transferred shares shall be considered as taxable income under the head “Income from Other Sources”. Consequently, the recipient shall be liable to pay tax on the value of the shares received, and if such shares are subsequently sold, capital gains tax shall be applicable on the long-term capital gains (LTCG). Based on the income details provided, no tax will be applicable in this scenario, as the basic exemption limit of Rs. 4 Lakhs will first be applied to offset the taxable gift income and then against the LTCG, and the remaining LTCG of Rs. 50,000 will fall within the LTCG exemption limit of Rs. 1.25 Lakhs.